China issued a sharp rebuke on Monday against Japan’s accelerating plans to station advanced missile systems on Yonaguni Island, a small and remote outpost just 110 kilometers (68 miles) east of Taiwan, intensifying one of the region’s most volatile security flashpoints.
The dispute, simmering for weeks, reignited after major Japanese media reported that Defense Minister Shinjiro Koizumi, during his inaugural inspection of the Yonaguni base, confirmed that the deployment of Type 03 medium-range surface-to-air missiles was progressing “steadily.” The move is part of Tokyo’s multi-year project to fortify its southwestern island chain—now seen as a potential frontline in any Taiwan contingency.
The Type 03 system, capable of intercepting hostile aircraft and air-to-surface threats, reflects Japan’s deepening anxieties over China’s expanding military footprint across the East China Sea. Koizumi defended the deployment during his remarks, pushing back against criticism that it risks destabilizing the region.
“The deployment can reduce the possibility of an armed attack on Japan,” he said, arguing that stronger defenses enhance deterrence rather than fuel conflict.
Yonaguni, Japan’s westernmost inhabited island and known internationally for its rugged diving sites, has been increasingly militarized over the past decade. The Ground Self-Defense Force (GSDF) established a base there in 2016 after overcoming initial local resistance.
Today, the facility hosts surveillance radars and electronic warfare units, making the island a crucial sentinel for monitoring Chinese military movements around the Taiwan Strait. Analysts say the addition of air-defense missiles would convert Yonaguni from a passive surveillance hub into an active combat-ready outpost.
China’s Foreign Ministry reacted furiously, framing Japan’s latest moves as part of a coordinated effort to create instability.
At a routine briefing in Beijing, spokesperson Mao Ning accused Tokyo of “deliberately attempting to create regional tension and provoke military confrontation.” She argued that the deployment must be viewed in tandem with recent comments by Japan’s new prime minister, Sanae Takaichi—a hardline conservative who has long championed stronger defenses and a tougher stance on China.
“Coupled with Prime Minister Sanae Takaichi’s erroneous remarks on Taiwan, this trend is extremely dangerous and warrants high vigilance from neighbouring countries and the international community,” Mao said.
Takaichi’s statements earlier this month—suggesting that a Chinese military assault on Taiwan, especially one involving naval force, could constitute an “existential threat” under Japan’s pacifist constitution—have drawn intense ire from Beijing. Under Japanese law, identifying such a threat could allow the Self-Defense Forces (SDF) to intervene militarily.
China accuses Japan of violating the spirit of the 1972 Japan-China Joint Communiqué, in which Tokyo acknowledged Beijing’s position on Taiwan. The diplomatic fallout has been swift and fierce.
Beijing summoned Japan’s ambassador, demanding a full retraction. Tokyo refused, saying Takaichi’s remarks were consistent with existing policy. A Chinese consulate official in Osaka further inflamed tensions by posting, then deleting, an online threat to “cut off that dirty neck”—widely interpreted as a targeted insult toward Takaichi. Japan responded by summoning Beijing’s envoy.
In parallel, China has postponed cultural exchanges, halted progress on negotiations over Japanese beef imports, and warned Tokyo of “crushing” consequences should it intervene in a Taiwan conflict.
Takaichi, a protégé of the late Shinzo Abe and a regular visitor to the controversial Yasukuni Shrine, has refused to soften her rhetoric. She argues that Japan’s security environment has drastically worsened due to China’s “unprecedented” military expansion and that defensive preparedness is essential.
But domestic critics—including constitutional scholars and former diplomats—warn that her stance could entangle Japan in an unwanted regional war, undermining decades of post-war pacifism.
Taipei, while cautious, has been broadly supportive of Japan’s strengthened posture. Deputy Foreign Minister Wu Chih-chung told lawmakers that the Yonaguni missile deployment “helps maintain security in the Taiwan Strait.”
“Japan is a sovereign country and it has the right to do everything necessary to protect the security of its own territory, as long as such actions do not threaten other countries,” Wu said. “We believe this is helpful to our national interests.”
President Lai Ching-te called on Beijing to “show restraint, act like a major power, and not become the troublemaker” in a region already under strain. Lai, whose Democratic Progressive Party favors closer security cooperation with Japan and the United States, emphasized that China should recommit to “a rules-based international order” to preserve peace.
The diplomatic feud is spilling into economic realms, particularly Japan’s tourism sector, which relies heavily on Chinese visitors. Nearly 7.5 million Chinese travelers visited Japan in the first nine months of 2025—almost 30 percent of all foreign arrivals—and their spending exceeded $1 billion monthly, buoyed by a weak yen.
China was Japan’s fourth-largest outbound tourism market last year, supporting record numbers of visitors at iconic destinations such as Mount Fuji and Kyoto’s historic districts.
Beijing’s latest travel advisory cautioning citizens against visiting Japan due to “personal safety risks” has already triggered a market sell-off among Japanese tourism and retail stocks. Analysts warn the economic damage could worsen if the standoff deepens.
Marcel Thieliant of Capital Economics noted that Beijing could escalate pressure by restricting exports of rare earths or targeting Japanese automakers, who have been losing ground to China’s booming electric-vehicle industry.
With Taiwan lying just 100 kilometers away, Yonaguni’s militarization is magnifying the risks of miscalculation. Regional security experts say even offhand political comments now carry the potential to spiral into confrontation, given the heightened military presence on all sides.
For now, Tokyo insists its missile deployment is a defensive, deterrent measure. But Beijing portrays it as a provocation, adding fuel to an already combustible strategic landscape.
As both powers harden their positions, the Taiwan Strait remains a geopolitical tinderbox—its stability threatened not just by military maneuvers but by the political rhetoric that surrounds them. Investors, diplomats, and regional governments are watching closely, bracing for potential fallout as Asia’s two largest economies confront one another across one of the world’s most sensitive fault lines.
